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Peak Project Management, LLC <br />34115 County Road 20.8 Trinidad, CO 81082 <br />Telephone: (719) 846-4975 Fax: (719) 846-4930 Cell: (719) 859-0111 <br />ranthompsory@wildblue.net <br />via Certified Mail 7007 1490 0001 8185 1437 <br />August 25, 2008 <br />Mr. Kent Gorham <br />Division of Reclamation, Mining & Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 RECEPIED <br />Re: New Elk Permit Renewal AUG 21%6 2008 <br />Dear Mr. Gorham: Division of neclamation, <br />Mining and Safety <br />The purpose of this submittal is to respond to Division notification of the <br />expiration of the five-year permit term for the New Elk mine, submit the renewal <br />application, and other required information. Enclosed are the following items as <br />requested by Division letter of May 23, 2008: <br />1. The permit renewal application form with a statement of the address of the <br />permittee, the term of the requested renewal, and the permit number. <br />Additional information is also provided. <br />2. A copy of the proposed public notice for Division review. Publication in <br />the Trinidad Chronicle News will commence upon notification from the <br />Division. <br />3. A copy of the current liability insurance certificate with an expiration date <br />of 2/08/2009. NECC will maintain the policy in force through the permit <br />renewal period. <br />4. The ownership and control information has changed. A revision to <br />Section 2.03.4 through 2.03.6 of the permit is enclosed. <br />Cline Mining recently completed acquisition of New Elk Coal Company. Current <br />information is contained in Item 4 above. It is anticipated that appointment of <br />officers and directors will continue in the near future and the Division will be <br />advised of new information as it becomes available. <br />As the Division is aware, NECC plans on reopening the New Elk underground <br />mine. Mine plans are currently under review and information will be submitted as <br />a permit revision in the near future. <br />Sincerely, <br />4), J <br />Ronald Thompson, Agent